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The company wants to ascertain the closing stock using the three possible methods (FIFO, LIFO and the weighted average). Information as follows: January bought 12 items at $40 each; May sold 8 at $52 each ,April bought 12 at $36 each; November sold 24 at $60 each and October bought 21 at$40 each.
Required:
a) Closing stock using the FIFO methods
b) Cost of goods sold using the FIFO method.
c) Profit or loss using the FIFO method.
d) Sales/ Revenue using the FIFO method
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- Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
- The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.The company wants to ascertain the closing stock using the three possible methods (FIFO, LIFO and the weighted average). Information as follows: January bought 12 items at $40 each; May sold 8 at $52 each ,April bought 12 at $36 each; November sold 24 at $60 each and October bought 21 at$40 each. Required: a) Closing stock using the FIFO methods b) Cost of goods sold using the FIFO method. c) Profit or loss using the FIFO method.
- Company A conducts the following transaction for the financial year ending Dec. 2011 for a particular item numbered item X 1. Jan. 1 bought 109 items at $34 each Feb. 10 bought 410 items at $40 each March 4 sold 215 items for $60 each April 16 bought 211 items at $50 each May 18 sold 320 items for $70 each October 1 bought 401 items at $65 each Nov. 29 sold 324 items for $95 each Requirement: Using the perpetual system solve for the followings: a. Find the closing stock using LIFO Find the profit/loss using the LIFO inventory methodAmani Hypermarket is following the Historical Cost accounting Method and furnishes you the following details. Particulars HCA – OMR Price Index Stock on 01-01-2019 160,000 100 Purchases 960,000 Stock on 31-12-2019 240,000 150 a. What is the value of closing stock under LIFO as per CPP Method? b. What is the value of Cost of Goods Sold under LIFO as per CPP Method?From the following figures (A) calculate the closing stock in trade that would be shown using (i)FIFO (ii)LIFO (iii)AVCO methods on a PERIODIC inventory basis. (B)Then prepare an income statement using (i)FIFO (ii)LIFO (iii)AVCO methods. Bought Sold January 120 at $16each June 125 at $22 each April 80 at $18 each November 210 at $25 each October 150 at $19 each Format you should follow to show the closing stock for the FIFO,LIFO and AVCO: Method Purchases Cost of good sold Ending Inventory Date Units Unit cost Total cost Units Unit cost Totat cost Units Unit cost Total Cost
- Lancelot plc's stock records show the following transactions for a specific item during last month: The organization made issues of inventory of 70 units each on 4th, 20th and 27th of the month whiles it received 300 units on 13th. The inventory at the beginning of last month consisted of 120 units valued at GHC7200. The receipt last month cost GHC62 per unit. The closing value of inventory for last month has been calculated twice using the FIFO and the LIFO. Which of the following statement about the closing inventory for last month is correct? A. The FIFO method is lower than the LIFO by GHC250 B. The LIFO method is lower than the FIFO by GHC250 C. The FIFO method is lower than the LIFO method by GHC240 D. The LIFO method is lower than the FIFO by GHC240 Reset SelectionEstefan’s accounts showed a gross profit for the year of £27,200. After the accounts were prepared it was found that the opening inventory/stock had been overstated by £1,200 while closing inventory/stock had been understated by £1,700. What is the amount of Estefan’s corrected gross profit for the year? Answers: a. £24,300 b. £26,700 c. £27,700 d. £30,100From the following figures (A) calculate the closing stock in trade that would be shown using (i)FIFO (ii)LIFO (iii)AVCO methods on a PERIODIC inventory basis. (B)Then prepare an income statement using (i)FIFO (ii)LIFO (iii)AVCO methods. Bought Sold January 120 at $16each June 125 at $22 each April 80 at $18 each November 210 at $25 each October 150 at $19 each Attached pictures of the Textbook to help with answering the question
